IRA Beneficiary | Ed Slott and Company, LLC

IRA Beneficiary

Client wants to designate his son a 10% share Primary Beneficiary along with his spouse at 90%. What happens to the spouses 90% share if she predeceases IRA owner?

The plan agreement will clearly state what happens in that circumstance. Most plan agreements will state that any beneficiary that predeceases the IRA owner will have their share equally divided amongst the remaining primary beneficiaries.  Again, the only way to know for sure is to read the plan agreement.

  • Rather than trying to figure out what happens under the default provisions, the IRA owner should specify (on the beneficiary designation form, or on a rider to the beneficiary designation form) how he/she wants the spouse's 90% to go if the spouse dies first.
  • Bruce Steiner
 

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